A solid talent acquisition strategy is imperative to a company’s bottom line. Therefore, various talent acquisition metrics are set in place to strategy effectiveness. Recruiters and hiring managers spend countless hours scouting out the best of the best.
Companies and marketing recruitment agencies implement various talent acquisition strategies to establish connections with hiring managers and candidates. The more qualified and motivated the pool of talent, the better the chance of hiring a top tier employees. High performing, top-tier employees leads to growth, resulting in success.
Which Talent Acquisition Metrics Matter
What are the more significant talent acquisition metrics to look at? Find what strategies are working by measuring strategies with proper metrics. Below is a list of crucial talent acquisition metrics to boost your bottom line:
1. Source of Hire
Between CRM software, job boards, and social recruiting, talent acquisition professionals are set-up for success. Track of the source of hire and note the results when sourcing talent. Sourece of hire results to keep an eye on:
- The amount of candidates per source.
- Source of new hires.
- Source that produced the most quality candidates.
- Sources that help with niche positions (i.e. UX job boards, design job boards, development job boards, etc.).
For example, initial candidate interest may stem from Facebook, while new employees are ultimately found through job boards. These results will help determine what sources are working and which to focus on during external recruitment.
2. Employee Turnover Rate
Measure your talent acquisition strategies through employee turnover rate. If a considerable number of employees leave the company within the first year, you have one of three problems:
- Failing to recruit the most qualified candidates.
- Company culture and management issues.
- Non-stimulating or unrewarding work.
A high employee turnover rate should always be noted, and as a result, improved upon. Further investigate why so many employees opt to leave within the first year through an employee exit interview to gain a better idea.
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The average number of interviewees needed to fill the position is the interview-to-offer ratio. Taking a look at the interview-to-offer ratio will reveal the quality of candidates. Lower ratios indicate high quality candidates; high ratios indicate low quality candidates. For good measure, a ratio of 2:1 or 3:1 is nice place to be.
“Large companies spend over $4,000 on average hiring a new employee.”
Cost-per-hire is the most telling, therefore, the important talent acquisition metric. Knowing how much your team is spending on hiring new candidates will indicate whether or not you need to invest more or less money into your recruitment strategy. The less money spent, the better. For example, a tight budget and low quality candidates will require in additional resources. According to statistics from the Society For Human Resource Management, larger companies will spend over $4,000 on average recruiting a new employee.
Implementing the right recruitment strategy is important. Measuring the effectiveness is necessary. Time is wasted and money is spent when recruitment strategies are not properly measured.
Within a single consultation, Profiles can take those talent acquisition metrics and prescribe the best approach to find you the right talent. Contact Profiles today to better streamline your recruitment processes.